Correlation Between Hanjin Transportation and DreamCIS
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and DreamCIS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hanjin Transportation and DreamCIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and DreamCIS, you can compare the effects of market volatilities on Hanjin Transportation and DreamCIS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hanjin Transportation with a short position of DreamCIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and DreamCIS.
Diversification Opportunities for Hanjin Transportation and DreamCIS
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanjin and DreamCIS is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and DreamCIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DreamCIS and Hanjin Transportation is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hanjin Transportation Co are associated (or correlated) with DreamCIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DreamCIS has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and DreamCIS go up and down completely randomly.
Pair Corralation between Hanjin Transportation and DreamCIS
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.48 times more return on investment than DreamCIS. However, Hanjin Transportation Co is 2.09 times less risky than DreamCIS. It trades about 0.03 of its potential returns per unit of risk. DreamCIS is currently generating about -0.21 per unit of risk. If you would invest 1,832,000 in Hanjin Transportation Co on September 12, 2024 and sell it today you would earn a total of 14,000 from holding Hanjin Transportation Co or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hanjin Transportation Co vs. DreamCIS
Performance |
| Timeline |
| Hanjin Transportation |
| DreamCIS |
Hanjin Transportation and DreamCIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and DreamCIS
The main advantage of trading using opposite Hanjin Transportation and DreamCIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, DreamCIS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DreamCIS will offset losses from the drop in DreamCIS's long position.| Hanjin Transportation vs. Samsung Electronics Co | Hanjin Transportation vs. Samsung Electronics Co | Hanjin Transportation vs. SK Hynix | Hanjin Transportation vs. POSCO Holdings |
| DreamCIS vs. Coloray International Investment | DreamCIS vs. Daol Investment Securities | DreamCIS vs. Daelim Trading Co | DreamCIS vs. Woori Technology Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |